Bill Text: TX HB4747 | 2023-2024 | 88th Legislature | Introduced


Bill Title: Relating to a franchise tax credit for taxable entities that provide child care.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2023-04-10 - Scheduled for public hearing on . . . [HB4747 Detail]

Download: Texas-2023-HB4747-Introduced.html
  88R14158 SRA-D
 
  By: Bernal H.B. No. 4747
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a franchise tax credit for taxable entities that
  provide child care.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 171, Tax Code, is amended by adding
  Subchapter N to read as follows:
  SUBCHAPTER N.  TAX CREDIT FOR PROVISION OF CHILD CARE
         Sec. 171.701.  DEFINITION. In this subchapter, "employee"
  means an individual who performs services for an employer for
  compensation under an oral or written contract of hire, whether
  express or implied.  The term does not include an independent
  contractor.
         Sec. 171.702.  ENTITLEMENT TO CREDIT.  A taxable entity is
  entitled to a credit in the amount and under the conditions provided
  by this subchapter against the tax imposed under this chapter.
         Sec. 171.703.  QUALIFICATION. A taxable entity qualifies
  for a credit under this subchapter if the taxable entity subsidizes
  all or a portion of the entity's employees' costs for child care at:
               (1)  a licensed child-care center operated by the
  entity; or
               (2)  a licensed commercial or home-based child-care
  center.
         Sec. 171.704.  AMOUNT OF CREDIT.  The amount of a taxable
  entity's credit for a report is equal to the lesser of:
               (1)  the amount of the costs attributable to
  subsidizing employee child care in the manner described by Section
  171.703 during the period on which the report is based; or
               (2)  the amount equal to one percent of the franchise
  tax due for the report after applying all other applicable credits.
         Sec. 171.705.  APPLICATION FOR CREDIT.  (a)  A taxable entity
  must apply for a credit under this subchapter on or with the report
  for which the credit is claimed.
         (b)  The comptroller shall prescribe the form and method of
  applying for a credit under this section.  A taxable entity must use
  the form and method prescribed by the comptroller to apply for the
  credit.
         (c)  The comptroller may require a taxable entity to submit
  with an application any information the comptroller determines is
  necessary to determine whether the taxable entity meets the
  requirements of Section 171.703.
         Sec. 171.706.  ASSIGNMENT PROHIBITED; EXEMPTION.  A taxable
  entity may not convey, assign, or transfer the credit allowed under
  this subchapter to another taxable entity unless substantially all
  of the assets of the taxable entity are conveyed, assigned, or
  transferred in the same transaction.
         Sec. 171.707.  RULES.  The comptroller shall adopt rules
  necessary to implement and administer this subchapter.
         SECTION 2.  This Act applies only to a report originally due
  on or after the effective date of this Act.
         SECTION 3.  This Act takes effect January 1, 2024.
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